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Switchers shun new wave of banks

Metro is one of the challenger banks failing to attract new current account customers (Dean Murray/Rex)

CHALLENGER banks are struggling to attract new current account customers as switchers continue to be lured by larger, established rivals.

A survey by the market analyst TNS to be published this week will show Santander as winning the battle to attract new customers, with a net 13% of respondents saying they switched to the Spanish bank last month.

Halifax, Nationwide and First Direct had net gains of 7%, 5% and 1% respectively.

By contrast, smaller providers that are relatively new entrants to the market, such as M&S and Metro, gained 0.7% and 0.4% respectively. TSB, which is an offshoot of Lloyds, made a net gain of 1%.

The figures highlight the continuing dominance of the larger banks despite the government having launched its seven-day switching guarantee scheme last September to try to boost competition. Since then, Santander has experienced the largest net gain every month, according to TNS.